Gandhinagar (Gujrat)[India], July 16 : Finance Minister Nirmala Sitharaman alongside Indonesian counterpart Mulyani Indrawati announced the launch of the Economic and Financial Dialogue between the two nations at the ministerial level.
This dialogue aims to foster collaboration, promote trade and investment, and enhance economic cooperation between India and Indonesia, two of the fastest-growing economies in the world.
The platform, unveiled during the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting, seeks to strengthen cooperation between the two nations and foster a shared understanding on global issues.
“We are growing under regional and global circumstances. We actually have a lot of potential”, said Mulyani Indrawati.
Since the adoption of India's "Look East Policy" in 1991 and the subsequent "Act East Policy," bilateral relations between India and Indonesia have witnessed significant growth in both commercial and cultural domains.
Indonesia has emerged as India's largest trading partner in the ASEAN region, with trade between the two countries increasing eightfold since 2005, reaching a remarkable USD 38 billion last year.
“The areas of cooperation include bilateral investment, financial services and infrastructure development, among others. For instance, India has developed expertise in digital public infrastructure. It can provide time-tested solutions for convenient and affordable digital payments, which can assist Indonesia in achieving its financial inclusion goals”, said Nirmala Sitharaman
The Finance Minister emphasized that it would serve as a platform for discussing common interests and mutually beneficial issues.
Sitharaman stated, “India and Indonesia are active members of multilateral organisations such as G-20, WTO, and East Asia Summit. India has taken over G20 Presidency from Indonesia, and there are several legacy issues that we are continuing to take forward during our Presidency. In this context, this dialogue can play an instrumental role in reaching a common understanding on issues, and take forward the global agenda from the perspective of EMDEs.”
India's assumption of the G20 Presidency from Indonesia creates an opportunity to carry forward legacy issues and work collaboratively on the global agenda, particularly from the perspective of emerging markets and developing economies (EMDEs).
"The Economic and Financial Dialogue (EFD) Dialogue is poised to enhance collaboration on bilateral and international economic and financial matters by bringing together economic policymakers and financial regulators from both countries. Areas of cooperation inter-alia, include macroeconomic challenges and global economic prospects, bilateral investment relations, and cooperation in G20 and ASEAN matters. Recognising the potential of the digital economy, the two Finance Ministers also noted the potential of collaboration in the field of fintech for financial inclusion," the official release said.
This dialogue can play an instrumental role in reaching a common understanding and contributing to global economic and financial stability.
“I believe that this dialogue will facilitate better cooperation between India and South East Asia, while contributing to global economic and financial stability”, said Nirmala Sitharaman in the conclusion.
The Finance Minister expressed confidence that the Economic and Financial Dialogue would facilitate better cooperation between India and Southeast Asia, while also strengthening their global standing.
"With the launch of this dialogue, India and Indonesia are set to embark on a journey of closer economic ties and enhanced collaboration, solidifying their position as key players in the global economic landscape," she added.
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